Home Education CME Group

CME Group

13
0
Regal Wallet Banner

The Chicago Mercantile Exchange Group is the world’s largest financial derivatives exchange. It is an American company that trades agricultural products, forex, energies, interest rates, metals, stock index funds, and cryptocurrency futures. Users can trade futures contracts and options on futures with their CME Globex trading platform. CME’s BrokerTec offers fixed income trading and their EBS platform offers forex trading. CME Group was the world’s fastest-growing exchange brand in 2019. Trading happens in two ways with the CME Group: through open outcry and through the CME Globex Trading System. 

CME group

Open Outcry

Open outcry trading consists of floor traders standing in a trading pit to trade with each other. Traders wear different colored jackets to indicate which company they are part of. They use hand signals to trade with each other. Although the system looks chaotic, it is an effective trading method. 

GME Globex Trading System

The GME Globex Trading System was the world’s first electronic trading platform for futures contracts that launched in 1992. It is open almost 24/7, accessible in 150 countries and territories, and traders can place orders electronically from their own homes or office. It has processed over one billion transactions so far and 90% of all CME Group’s trading volume happens through the system.

The GME Globex Trading System is connected with other electronic trading platforms like the Dubai Mercantile Exchange and the Singapore Exchange. Over 4,9 million contracts change hands daily on the exchange by non-U.S. traders. Almost every online broker uses CME SPAN software. This software determines the margin requirements traders have to fulfill. 

Globex opens Sunday evening and closes Friday afternoon. During this time users can trade, view orders, and deposit/withdraw funds. To use Globex, traders need a CME Group clearing firm relationship and a CME Group-certified trading application. Between daily trading sessions, there are 30 to 60-minute breaks. 

History of GME Globex Trading System

Plans to launch the GME Globex Trading System go back to 1987. The idea was to provide the ability to trade futures and options in the market after-hours. In 1992 financial news company Reuters supplied real-time price data which made this possible. The GME Globex Trading System started with 3 forex pairs but expanded to thousands of assets in the years to come. Nowadays you can trade all kinds of assets on Globex, including energies, stock indices, real estate, precious metals, and even trade options on the weather. Some financial instruments like certain options and futures are only traded on Globex or subsidiaries of Globex. 


Methodology
The mission of Business24-7 is to provide comprehensive, unbiased ratings and reviews of the best online brokers. Trading platform, fees, mobile trading, payments, assets, regulation, education, and research are all part of our six-month evaluation of a broker’s trading platform. The rating scale was based on thousands of data points that have been weighted into the scoring system. Brokerages were required to fill out a multi-point survey regarding every aspect of their platform. In-person demonstrations and evaluations were provided by the majority of the online brokers we reviewed. Stefan Grasic, along with our team of industry experts, conducted our reviews and developed this methodology for ranking what form is used in online investing.

Disclaimer
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.

Previous articleBloomberg L.P.
Next articleConnect2India
Stefan Grasic (Dipl.-Jur) is the World Wide Director of research for Buisness24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active Crypto, Forex and general investment researcher advising blockchain companies at their start up level. He keeps fit by mountain biking, surfing, skiing and lots of other adrenaline sports.

LEAVE A REPLY

Please enter your comment!
Please enter your name here